Skoda Auto, a unit of Volkswagen AG, reportedly said on Friday it may expand one of its existing plants in the Czech Republic ahead of next year’s launch of its fourth car model.


“It is one of the possibilities for the production of a new model which would be based on the Roomster,” a Skoda spokesman told Reuters.


The news agency said local paper Mlada Fronta Dnes reported on Thursday that Skoda would seek investment incentives from the government for a new assembly line in Kvasiny, 90 miles east of Prague, which could employ up to 3,000 people.


The spokesman reportedly declined to comment on any figures.


Reuters noted that Skoda Auto officials on Thursday denied they were planning a new location for production.

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The report said Skoda currently makes three model lines – the small Fabia hatchback, wagon and sedan, the mid-sized Octavia hatch and wagon and the larger Superb sedans.


According to Reuters, it plans to expand its portfolio with a new family model based on its Roomster prototype in 2006.


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